Lodging real estate investment trust Ashford Hospitality Trust Inc has announced it wants to acquire FelCor Lodging Trust Inc.
According to Reuters News Agency, the deal to buy FelCor Lodging is worth USD1.27 billion.
However, the acquisition plan will see a total control of the company.
Ashford Hospitality, owns about 4.5 percent of FelCor’s outstanding common shares, also said it nominated a slate of seven independent directors to FelCor’s board.
Ashford Hospitality is offering USD9.27 per share represents a premium of 28.2 percent to FelCor’s Friday close.
Reuters calculation of the offer price of $1.27 billion is based on FelCor’s 137.5 million shares outstanding as of Sept. 30.
The company invests in upper upscale and full-service hotels, said the combined company would be the second-largest pure-play publicly traded lodging real estate investment trust by room count and the third-largest by enterprise value.